6.475 billion
Tax Cuts Signed by GOP Governors: 2011 - 2013 Since 2011, Republican governors have enacted $38.33 billion in tax relief WASHINGTON, D.C. – 2013 was a year that saw movement on significant tax reform and tax relief legislation in states such as North Carolina, Wisconsin, Ohio, and New Mexico. Americans for Tax Reform looks forward to continuing to help push pro-growth tax policy in the states during the 2014 legislative sessions. As 2013 comes to a close and we enter 2014, an important election year in which the majority of the nation’s governorships are up for grabs, Americans for Tax Reform has compiled a comprehensive list of tax cuts enacted by Republican governors since 2011. Of the thirty Republican governors currently in office, nineteen have enacted major tax cuts for their constituents. Those cuts total to over $38 billion in tax relief. Legislators in Arizona and Georgia have indicated an interest in doing base broadening, rate-lowering tax reform. A bill to repeal Tennessee’s tax on investment income will be considered when lawmakers return to Nashville in January and lawmakers in Wisconsin, Nebraska, and Oklahoma have indicated an interest in potentially phasing out their state income tax. Kansas and North Carolina, two states who have taken the lead on major tax reform, have plans to pass legislation in the coming years to further improve their tax codes.
Alaska (Gov. Sean Parnell): $4.1 billion tax cut over five years 2013: SB 21 – $4.1 billion tax cut over five yearsi This bill makes changes to the tax credits under the oil production tax system. For leases or properties that contain land that is north of 68 degrees North latitude, the following changes are made: (1) Credits for qualified capital expenditures are limited to expenditures incurred before January 1, 2014; (2) beginning January 1, 2014, the rate for credits earned for net operating losses increases to 45% of the loss; (3) beginning January 1, 2016, the rate for credits earned for net operating losses decreases to 35% of the loss. The operating portion of the long-term fiscal plan anticipates an average of $400 million in refundable credits through 2023. A gross revenue exclusion (GRE) of 20% of the gross value at the point of production is applicable to production from certain areas with an additional 10% GRE available to a limited amount of that production. Arizona (Gov. Jan Brewer): $1.55 billion tax cut over six years
Page 2 of 7 2011: SB 1001 - $1.55 billion tax cut over six yearsii *The legislation begins phasing in corporate income tax reductions starting in 2014. It also Eliminates capital gains on income derived from small businesses, beginning in 2014 Pre-Tax Reform Corporate rate: 6.986%
Post-Tax Reform (2018) Corporate Rate: 4.9%
Idaho (Gov. Butch Otter): $278.5 million in tax cuts over five years 2012: HB 563 – $178.5 million over five years iii (the tax cut was enacted retroactively for 2012) Pre-Tax Reform Individual top rate: 7.8% Corporate: 7.6%
Post-Tax Reform (2012) Individual top rate: 7.4% Corporate: 7.4%
2013: HB 315 - $100 million over five yearsiv Creates a $3,000 exemption on exemption on a de minimis item of tangible personal property that is purchased on or after January 1, 2013 and has a purchase price of $3,000 or less. The proposal triggers the $100,000 exemption on business personal property on January 1, 2013. In addition, the exemption will be expanded to include operating property.
Indiana (Gov. Mike Pence): $907 million over five years 2013: HB 1001 – $907 million tax cut over five yearsv Indiana lawmakers joined their North Carolina counterparts in killing their state death tax. The final tax reform package passed by Hoosier State lawmakers cut the income tax by 5 percent (instead of the 10 percent reduction that Pence asked for at the beginning of session), taking the rate from 3.4% to 3.3 percent in 2015, and then down to 3.23 percent in 2017. “What we ended up doing was putting together a collective tax package that results in the largest tax cut in our state’s history, about $1.1 billion dollars,” said Speaker Brian Bosma of the tax changes fiscal impact over the next four years Pre-Tax Reform Individual rate: 3.4% Death tax: 20%
Post-Tax Reform (2015) Individual rate: 3.3% Death tax: Repealed
Post-Tax Reform (2017) Individual rate: 3.23% Death tax: Repealed
Iowa (Gov. Terry Branstad): $2.25 billion over five years 2013: SF 295 – $2.25 billion property and income tax cut over five yearsvi The legislation amounted to the largest tax cut in Iowa history. SF 295 created a new business property tax credit, capped the annual property tax growth rate at 3% instead
Page 3 of 7 of the previous 4%, reduced the actual value assessment of commercial and industrial property to 95% for FY 2013 and 90% for FY 2014 and thereafter, and increased the state earned income tax credit from 7% to 14% for FY 2013 and 15% for FY 2014 and thereafter.
Kansas (Gov. Sam Brownback): $3.723 billion tax cut over six years 2012: HB 2117 – $4.5 billion tax cut over six yearsvii 2013: HB 2059 – $777.1 million increase over five yearsviii Lawmakers in Kansas argue that HB 2059 is actually a net cut and that the revenue score does not reflect that the sales tax was reduced from the rate at the time but rather shows a rate increase from the sunset of the original sales tax increase. HB 2117 and HB 2059 were a single bill that was blocked by moderate Republicans and Democrats in the State Senate in 2012, Governor Brownback has stated that both are part of the same package of tax reform he intended for the state. Additionally, if the budget window is drawn out over a longer period of time, HB 2059 becomes a net tax reduction. Pre-Tax Reform Post-Tax Reform (2012) Post-Tax Reform (2013) Individual: 6.45%, 6.25%, Individual: 4.9%, 3% Individual: 3.9%, 3.5% 2.3% *The 2012 legislation also exempted pass-through income (LLC’s, S-corporations, etc) from taxation.
Maine (Gov. Paul LePage): $150 million in tax cuts over two years. 2011: HP 778 – $150 million tax cut over two years Pre-Tax Reform Individual: 8.5%, 7%, 2% Death Tax: Progressive rates from 6% to 16%
Post-Tax Reform (2011) Individual: 7.95%, 6.5%, 0% Death Tax: Progressive rates from 8% to 12%
Exemption level – $1 million
Exemption level – $2 million
Michigan (Gov. Rick Snyder): $759.2 million in cuts over two years. 2011: HB 4361, HB 4362, HB 4479 – $759.2 million over two yearsix The legislative package repealed the Michigan Business Tax while making small reductions in the state personal income tax. Nebraska (Gov. Dave Heineman): $97.1 million in cuts over five years. 2012: LB 790 – $97.1 million over three yearsx
Page 4 of 7 Pre-Tax Reform Post-Tax Reform (2013) Individual: 6.84%, 5.12%, 3.57%, Individual: 6.84%, 5.01%, 3.51%, 2.46% 2.56%
New Mexico (Gov. Susana Martinez): $119.33 million in cuts over five years. 2013: HB 641 – $119.33 million over five yearsxi Gov. Susana Martinez championed and signed into law a bill that cuts the state corporate income tax from 7.6%, to 5.9% over a 5 year period. Pre-Reform (2014) (2015) Corporate: Corporate: Corporate: 7.6%, 6.4%, 7.3%, 6.4%, 6.9%, 4.8% 4.8% 6.4%, 4.8%
(2016) (2017) (2018) Corporate: Corporate: Corporate: 6.6%, 6.2%, 4.8% 5.9%, 4.8% 6.4%, 4.8%
North Carolina (Gov. Pat McCrory $6.475 billion over five years 2013: HB 998 –$6.475 billion over five yearsxii The historic tax reform package passed in July moves the state from a tiered personal income tax with a top rate of 7.75 percent, the highest in the South, to a flat 5.75 percent over two years. This 25 percent reduction in the top individual income tax rate was the largest in the country this year. The plan also eliminates the death tax and reduces the corporate tax from 6.9 percent to 5 percent over two years. If certain revenue targets are met, the corporate rate will fall to as low as four percent by 2016, and ultimately to three percent by 2017. Pre-Tax Reform Corporate: 6.9% Individual: 7.75%, 7%, 6% Death Tax: 16%
Post-Tax Reform (2014) Corporate: 6% Individual (Consolidated): 5.8% Death Tax: Repealed
Post-Tax Reform (2015) Corporate: 5% (3% by 2017 if revenue targets met) Individual: 5.75% Death Tax: Repealed
North Dakota (Gov. Jack Dalrymple): $750 million in cuts since 2011. 2011: HB1047 - $500 million over two years. xiii $120 million in individual income tax cuts across all tax brackets. Combined with action taken during the last legislative session, North Dakotans will realize a 30.2 percent reduction in their income tax. Also:
Page 5 of 7
$342 million in property tax relief for homeowners, farmers, ranchers and commercial businesses A reduction in corporate income taxes of 19.5 percent, saving businesses $25 million. An average tax reduction of 7 percent for financial institutions, resulting in about $2 million in tax savings.xiv
2013: HB 2156 – $250 million over two years.xv Providing $200 million in personal income tax relief and $50 million in corporate tax relief. This represents a 20 percent and 12 percent tax cut, respectively.xvi
Ohio (Gov. John Kasich): $3 billion over three years 2013: HB 59 – $3 billion over three yearsxvii
10 Percent Income Tax Cut: Income tax rates are reduced 10 percent over the next three years. This builds on the $800 million in tax relief achieved in the past two years by eliminating the Death Tax and preserving an income tax cut.
50 Percent Small Business Tax Cut: Taxable income from small businesses will be reduced by 50 percent on the first $250,000 of business income. This means taxes are effectively cut in half for nearly all small businesses in Ohio. This dramatic tax cut frees more than $1.6 billion of new capital over three years for small businesses to better leverage the expanding economic recovery and make new investments and increase hiring to improve their competitiveness.
Tax Relief for Low-Income Ohioans: The new Ohio Earned Income Tax Credit is created to assist more low-income Ohioans. Now, working families can receive a credit against their Ohio income tax, providing relief for 475,000 more households than the state’s current low-income tax credit.
Oklahoma (Gov. Mary Fallin): $235 million over two years (2015 start date) 2013: HB 2032 – $235 million over two years.xviii Starting in 2015 there will be a reduction in the income tax rate by a quarter of a percent for two years. Pennsylvania (Gov. Tom Corbett): Corporate Tax Cut $600 million over twelve years (2015 start date) 2013: HB 440- $600 million over twelve years (est.)xix 2015 2016 2017 2018 2019
Corporate: 9.89% Corporate: 9.69% Corporate: 8.48% Corporate: 9.29% Corporate: 8.96%
Page 6 of 7 2020 2021 2022 2023 2024 2025 and beyond
Corporate: 8.63% Corporate: 8.30% Corporate: 7.97% Corporate: 7.64% Corporate: 7.31% Corporate: 6.99%
Tennessee (Gov. Bill Haslam): $21.2 million over one year 2013: HB 193 – Sales Tax Cut 5.25% - 5% and Raises income exemption levels for those 65 and over from $26,200 to $33,000 for single filers and from $37,000 to $59,000 for joint filers.xx Texas (Gov. Rick Perry): $12. 575 billion tax cut over five years 2011: SB 1 (Article 37) – Made permanent the recent tax cut extended to 40,000 small businesses in the previous legislative session (under current law, the $1 million business margins tax exemption will expire in 2013). Utah (Gov. Gary Herbert): $36.587 million over three years 2012: HB 129 – $36.587 million over three years million tax cut for small business.xxi Wisconsin (Gov. Scott Walker): $801 million tax cut over two years 2013: AB 40 – $651 million over two years.xxii $650 million in income tax cuts were enacted during the 2013 legislative session and the number of individual income tax brackets was reduced from five to four. The rate for the bottom tax bracket was reduced from 4.6% to 4.4%. The rate for the 2nd to bottom bracket was cut from 6.15% to 5.84%. The two tax brackets above that were combined, taking the rates from 6.5% and 6.75% to 6.27%. The top rate was reduced from 7.75% to 7.65%. Gov. Walker's office says the median family of four making $80,607 will save $345 over the next two years, and $1,725 over the next decade.
Pre-Tax reform individual rates 7.75%(>$319,460) 6.75% (>$217,360) 6.5% (>$29,020) 6.15% (>$14,510) 4.6% (>$0)
Post-Tax reform individual rates 7.65% (>$315,460) 6.27% (combined) (>$28,650) 6.27% (combined) (>$28,650) 5.84% (>$14,330) 4.4% (>$0) *6.75% & 6.5% rates consolidated to one rate of 6.27% **Rates are for married filing jointly
Page 7 of 7 2013: SB 1 – Property Tax Cut- $150 millionxxiii
i
http://www.legis.state.ak.us/PDF/28/F/SB0021-14-5-041213-REV-Y.PDF
ii
http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/50leg/2s/fiscal/hb2001.doc.htm&Session_ID=105 iii
http://legislature.idaho.gov/legislation/2012/H0563SOP.pdf
iv
http://www.legislature.idaho.gov/legislation/2013/H0315SOP.pdf
v
http://www.in.gov/legislative/bills/2013/PDF/FISCAL/HB1001.008.pdf
vi
http://coolice.legis.iowa.gov/CoolICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=sf295&ga=85 and http://thegazette.com/2013/06/12/governor-lawmakers-brag-about-largest-tax-cut-in-iowa-history/ vii
http://www.kslegislature.org/li_2012/b2011_12/measures/documents/summary_hb_2117_2012.pdf
viii
http://www.kslegislature.org/li/b2013_14/measures/documents/summary_hb_2059_2013.pdf
ix
http://www.legislature.mi.gov/documents/2011-2012/billanalysis/Senate/pdf/2011-SFA-4361-N.pdf
x
http://nebraskalegislature.gov/FloorDocs/102/PDF/FN/LB970-4.pdf
xi
http://www.nmlegis.gov/Sessions/13%20Regular/firs/HB0641.PDF
xii
http://www.ncleg.net/Sessions/2013/FiscalNotes/House/PDF/HFN0998v5.pdf
xiii
http://governor.nd.gov/media-center/news/dalrymple-signs-nearly-500-million-tax-relief http://www.legis.nd.gov/files/fiscal/2011-13/docs/2011-13fiscalimpact.pdf?20131022105300 xv http://governor.nd.gov/media-center/news/dalrymple-signs-250-million-income-tax-relief xvi http://www.legis.nd.gov/files/fiscal/2013-15/docs/2013-15fiscalimpact.pdf?20131022105420 xvii http://www.lsc.state.oh.us/analyses130/h0059-ps-130.pdf xviii http://newsok.com/oklahoma-gov.-mary-fallin-signs-tax-cut-measure/article/3809635 xiv
xix
http://www.legis.state.pa.us/WU01/LI/BI/FN/2013/0/HB0440P1608.pdf & http://www.yorkdispatch.com/ci_23189015/pa-house-passes-tax-cut-businesses xx http://www.capitol.tn.gov/Bills/108/Fiscal/SB0199.pdf xxi http://le.utah.gov/lfa/fnotes/2012/sb0129.fn.pdf xxii
https://docs.legis.wisconsin.gov/2013/related/fe/ab40/ab40_JSCTE.pdf & http://www.jsonline.com/news/statepolitics/scott-walker-says-he-wants-to-continue-cutting-taxes-b9947339z1214143311.html
xxiii
http://walker.wi.gov/property-tax-relief
Alaska (Gov. Sean Parnell): $4.1 billion tax cut over five years 2013: SB 21 – $4.1 billion tax cut over five yearsi This bill makes changes to the tax credits under the oil production tax system. For leases or properties that contain land that is north of 68 degrees North latitude, the following changes are made: (1) Credits for qualified capital expenditures are limited to expenditures incurred before January 1, 2014; (2) beginning January 1, 2014, the rate for credits earned for net operating losses increases to 45% of the loss; (3) beginning January 1, 2016, the rate for credits earned for net operating losses decreases to 35% of the loss. The operating portion of the long-term fiscal plan anticipates an average of $400 million in refundable credits through 2023. A gross revenue exclusion (GRE) of 20% of the gross value at the point of production is applicable to production from certain areas with an additional 10% GRE available to a limited amount of that production. Arizona (Gov. Jan Brewer): $1.55 billion tax cut over six years
Page 2 of 7 2011: SB 1001 - $1.55 billion tax cut over six yearsii *The legislation begins phasing in corporate income tax reductions starting in 2014. It also Eliminates capital gains on income derived from small businesses, beginning in 2014 Pre-Tax Reform Corporate rate: 6.986%
Post-Tax Reform (2018) Corporate Rate: 4.9%
Idaho (Gov. Butch Otter): $278.5 million in tax cuts over five years 2012: HB 563 – $178.5 million over five years iii (the tax cut was enacted retroactively for 2012) Pre-Tax Reform Individual top rate: 7.8% Corporate: 7.6%
Post-Tax Reform (2012) Individual top rate: 7.4% Corporate: 7.4%
2013: HB 315 - $100 million over five yearsiv Creates a $3,000 exemption on exemption on a de minimis item of tangible personal property that is purchased on or after January 1, 2013 and has a purchase price of $3,000 or less. The proposal triggers the $100,000 exemption on business personal property on January 1, 2013. In addition, the exemption will be expanded to include operating property.
Indiana (Gov. Mike Pence): $907 million over five years 2013: HB 1001 – $907 million tax cut over five yearsv Indiana lawmakers joined their North Carolina counterparts in killing their state death tax. The final tax reform package passed by Hoosier State lawmakers cut the income tax by 5 percent (instead of the 10 percent reduction that Pence asked for at the beginning of session), taking the rate from 3.4% to 3.3 percent in 2015, and then down to 3.23 percent in 2017. “What we ended up doing was putting together a collective tax package that results in the largest tax cut in our state’s history, about $1.1 billion dollars,” said Speaker Brian Bosma of the tax changes fiscal impact over the next four years Pre-Tax Reform Individual rate: 3.4% Death tax: 20%
Post-Tax Reform (2015) Individual rate: 3.3% Death tax: Repealed
Post-Tax Reform (2017) Individual rate: 3.23% Death tax: Repealed
Iowa (Gov. Terry Branstad): $2.25 billion over five years 2013: SF 295 – $2.25 billion property and income tax cut over five yearsvi The legislation amounted to the largest tax cut in Iowa history. SF 295 created a new business property tax credit, capped the annual property tax growth rate at 3% instead
Page 3 of 7 of the previous 4%, reduced the actual value assessment of commercial and industrial property to 95% for FY 2013 and 90% for FY 2014 and thereafter, and increased the state earned income tax credit from 7% to 14% for FY 2013 and 15% for FY 2014 and thereafter.
Kansas (Gov. Sam Brownback): $3.723 billion tax cut over six years 2012: HB 2117 – $4.5 billion tax cut over six yearsvii 2013: HB 2059 – $777.1 million increase over five yearsviii Lawmakers in Kansas argue that HB 2059 is actually a net cut and that the revenue score does not reflect that the sales tax was reduced from the rate at the time but rather shows a rate increase from the sunset of the original sales tax increase. HB 2117 and HB 2059 were a single bill that was blocked by moderate Republicans and Democrats in the State Senate in 2012, Governor Brownback has stated that both are part of the same package of tax reform he intended for the state. Additionally, if the budget window is drawn out over a longer period of time, HB 2059 becomes a net tax reduction. Pre-Tax Reform Post-Tax Reform (2012) Post-Tax Reform (2013) Individual: 6.45%, 6.25%, Individual: 4.9%, 3% Individual: 3.9%, 3.5% 2.3% *The 2012 legislation also exempted pass-through income (LLC’s, S-corporations, etc) from taxation.
Maine (Gov. Paul LePage): $150 million in tax cuts over two years. 2011: HP 778 – $150 million tax cut over two years Pre-Tax Reform Individual: 8.5%, 7%, 2% Death Tax: Progressive rates from 6% to 16%
Post-Tax Reform (2011) Individual: 7.95%, 6.5%, 0% Death Tax: Progressive rates from 8% to 12%
Exemption level – $1 million
Exemption level – $2 million
Michigan (Gov. Rick Snyder): $759.2 million in cuts over two years. 2011: HB 4361, HB 4362, HB 4479 – $759.2 million over two yearsix The legislative package repealed the Michigan Business Tax while making small reductions in the state personal income tax. Nebraska (Gov. Dave Heineman): $97.1 million in cuts over five years. 2012: LB 790 – $97.1 million over three yearsx
Page 4 of 7 Pre-Tax Reform Post-Tax Reform (2013) Individual: 6.84%, 5.12%, 3.57%, Individual: 6.84%, 5.01%, 3.51%, 2.46% 2.56%
New Mexico (Gov. Susana Martinez): $119.33 million in cuts over five years. 2013: HB 641 – $119.33 million over five yearsxi Gov. Susana Martinez championed and signed into law a bill that cuts the state corporate income tax from 7.6%, to 5.9% over a 5 year period. Pre-Reform (2014) (2015) Corporate: Corporate: Corporate: 7.6%, 6.4%, 7.3%, 6.4%, 6.9%, 4.8% 4.8% 6.4%, 4.8%
(2016) (2017) (2018) Corporate: Corporate: Corporate: 6.6%, 6.2%, 4.8% 5.9%, 4.8% 6.4%, 4.8%
North Carolina (Gov. Pat McCrory $6.475 billion over five years 2013: HB 998 –$6.475 billion over five yearsxii The historic tax reform package passed in July moves the state from a tiered personal income tax with a top rate of 7.75 percent, the highest in the South, to a flat 5.75 percent over two years. This 25 percent reduction in the top individual income tax rate was the largest in the country this year. The plan also eliminates the death tax and reduces the corporate tax from 6.9 percent to 5 percent over two years. If certain revenue targets are met, the corporate rate will fall to as low as four percent by 2016, and ultimately to three percent by 2017. Pre-Tax Reform Corporate: 6.9% Individual: 7.75%, 7%, 6% Death Tax: 16%
Post-Tax Reform (2014) Corporate: 6% Individual (Consolidated): 5.8% Death Tax: Repealed
Post-Tax Reform (2015) Corporate: 5% (3% by 2017 if revenue targets met) Individual: 5.75% Death Tax: Repealed
North Dakota (Gov. Jack Dalrymple): $750 million in cuts since 2011. 2011: HB1047 - $500 million over two years. xiii $120 million in individual income tax cuts across all tax brackets. Combined with action taken during the last legislative session, North Dakotans will realize a 30.2 percent reduction in their income tax. Also:
Page 5 of 7
$342 million in property tax relief for homeowners, farmers, ranchers and commercial businesses A reduction in corporate income taxes of 19.5 percent, saving businesses $25 million. An average tax reduction of 7 percent for financial institutions, resulting in about $2 million in tax savings.xiv
2013: HB 2156 – $250 million over two years.xv Providing $200 million in personal income tax relief and $50 million in corporate tax relief. This represents a 20 percent and 12 percent tax cut, respectively.xvi
Ohio (Gov. John Kasich): $3 billion over three years 2013: HB 59 – $3 billion over three yearsxvii
10 Percent Income Tax Cut: Income tax rates are reduced 10 percent over the next three years. This builds on the $800 million in tax relief achieved in the past two years by eliminating the Death Tax and preserving an income tax cut.
50 Percent Small Business Tax Cut: Taxable income from small businesses will be reduced by 50 percent on the first $250,000 of business income. This means taxes are effectively cut in half for nearly all small businesses in Ohio. This dramatic tax cut frees more than $1.6 billion of new capital over three years for small businesses to better leverage the expanding economic recovery and make new investments and increase hiring to improve their competitiveness.
Tax Relief for Low-Income Ohioans: The new Ohio Earned Income Tax Credit is created to assist more low-income Ohioans. Now, working families can receive a credit against their Ohio income tax, providing relief for 475,000 more households than the state’s current low-income tax credit.
Oklahoma (Gov. Mary Fallin): $235 million over two years (2015 start date) 2013: HB 2032 – $235 million over two years.xviii Starting in 2015 there will be a reduction in the income tax rate by a quarter of a percent for two years. Pennsylvania (Gov. Tom Corbett): Corporate Tax Cut $600 million over twelve years (2015 start date) 2013: HB 440- $600 million over twelve years (est.)xix 2015 2016 2017 2018 2019
Corporate: 9.89% Corporate: 9.69% Corporate: 8.48% Corporate: 9.29% Corporate: 8.96%
Page 6 of 7 2020 2021 2022 2023 2024 2025 and beyond
Corporate: 8.63% Corporate: 8.30% Corporate: 7.97% Corporate: 7.64% Corporate: 7.31% Corporate: 6.99%
Tennessee (Gov. Bill Haslam): $21.2 million over one year 2013: HB 193 – Sales Tax Cut 5.25% - 5% and Raises income exemption levels for those 65 and over from $26,200 to $33,000 for single filers and from $37,000 to $59,000 for joint filers.xx Texas (Gov. Rick Perry): $12. 575 billion tax cut over five years 2011: SB 1 (Article 37) – Made permanent the recent tax cut extended to 40,000 small businesses in the previous legislative session (under current law, the $1 million business margins tax exemption will expire in 2013). Utah (Gov. Gary Herbert): $36.587 million over three years 2012: HB 129 – $36.587 million over three years million tax cut for small business.xxi Wisconsin (Gov. Scott Walker): $801 million tax cut over two years 2013: AB 40 – $651 million over two years.xxii $650 million in income tax cuts were enacted during the 2013 legislative session and the number of individual income tax brackets was reduced from five to four. The rate for the bottom tax bracket was reduced from 4.6% to 4.4%. The rate for the 2nd to bottom bracket was cut from 6.15% to 5.84%. The two tax brackets above that were combined, taking the rates from 6.5% and 6.75% to 6.27%. The top rate was reduced from 7.75% to 7.65%. Gov. Walker's office says the median family of four making $80,607 will save $345 over the next two years, and $1,725 over the next decade.
Pre-Tax reform individual rates 7.75%(>$319,460) 6.75% (>$217,360) 6.5% (>$29,020) 6.15% (>$14,510) 4.6% (>$0)
Post-Tax reform individual rates 7.65% (>$315,460) 6.27% (combined) (>$28,650) 6.27% (combined) (>$28,650) 5.84% (>$14,330) 4.4% (>$0) *6.75% & 6.5% rates consolidated to one rate of 6.27% **Rates are for married filing jointly
Page 7 of 7 2013: SB 1 – Property Tax Cut- $150 millionxxiii
i
http://www.legis.state.ak.us/PDF/28/F/SB0021-14-5-041213-REV-Y.PDF
ii
http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/50leg/2s/fiscal/hb2001.doc.htm&Session_ID=105 iii
http://legislature.idaho.gov/legislation/2012/H0563SOP.pdf
iv
http://www.legislature.idaho.gov/legislation/2013/H0315SOP.pdf
v
http://www.in.gov/legislative/bills/2013/PDF/FISCAL/HB1001.008.pdf
vi
http://coolice.legis.iowa.gov/CoolICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=sf295&ga=85 and http://thegazette.com/2013/06/12/governor-lawmakers-brag-about-largest-tax-cut-in-iowa-history/ vii
http://www.kslegislature.org/li_2012/b2011_12/measures/documents/summary_hb_2117_2012.pdf
viii
http://www.kslegislature.org/li/b2013_14/measures/documents/summary_hb_2059_2013.pdf
ix
http://www.legislature.mi.gov/documents/2011-2012/billanalysis/Senate/pdf/2011-SFA-4361-N.pdf
x
http://nebraskalegislature.gov/FloorDocs/102/PDF/FN/LB970-4.pdf
xi
http://www.nmlegis.gov/Sessions/13%20Regular/firs/HB0641.PDF
xii
http://www.ncleg.net/Sessions/2013/FiscalNotes/House/PDF/HFN0998v5.pdf
xiii
http://governor.nd.gov/media-center/news/dalrymple-signs-nearly-500-million-tax-relief http://www.legis.nd.gov/files/fiscal/2011-13/docs/2011-13fiscalimpact.pdf?20131022105300 xv http://governor.nd.gov/media-center/news/dalrymple-signs-250-million-income-tax-relief xvi http://www.legis.nd.gov/files/fiscal/2013-15/docs/2013-15fiscalimpact.pdf?20131022105420 xvii http://www.lsc.state.oh.us/analyses130/h0059-ps-130.pdf xviii http://newsok.com/oklahoma-gov.-mary-fallin-signs-tax-cut-measure/article/3809635 xiv
xix
http://www.legis.state.pa.us/WU01/LI/BI/FN/2013/0/HB0440P1608.pdf & http://www.yorkdispatch.com/ci_23189015/pa-house-passes-tax-cut-businesses xx http://www.capitol.tn.gov/Bills/108/Fiscal/SB0199.pdf xxi http://le.utah.gov/lfa/fnotes/2012/sb0129.fn.pdf xxii
https://docs.legis.wisconsin.gov/2013/related/fe/ab40/ab40_JSCTE.pdf & http://www.jsonline.com/news/statepolitics/scott-walker-says-he-wants-to-continue-cutting-taxes-b9947339z1214143311.html
xxiii
http://walker.wi.gov/property-tax-relief
